Media Release
27 October 2000

Manukau growth continues to grow

Manukau’s economic growth continues to outstrip the rest of the nation by nearly 4%. While New Zealand’s economy grew by 4.8% in the June year Manukau excelled in registering 8.2%.

These growth rates are significant in light of the current pessimism currently pervading the country largely due to depreciation of the New Zealand dollar and the predictions that the level of inflation will exceed the Reserve Bank’s target range.

Even though economic activity in New Zealand and Manukau did contract 0.7% and 4.0% respectively in the June 2000 quarter this must be viewed in the context of the explosive growth experienced in the preceding quarters.

Much of the contraction has been registered in the housing market with the value of residential construction down by 11% for the year ended August 2000. With house sales continuing their downward trend, a trend that is reflected in the decrease of new dwellings, it is predicted that this will continue until demand adjusts to supply.

“The current housing market in Manukau is characterised by the supply exceeding demand. This is happening for a number of reasons with the major ones being our population growth slowing, high interest rates and low business confidence. Essentially, the industry is not contracting but self-correcting and will continue to do so until a reasonable equilibrium is reached,” said Manukau City Mayor Sir Barry Curtis.

“It should be noted that while our housing market may have slowed, our non-residential property sector is still forging ahead with consents in Manukau increasing over 30% on the previous year, in contrast to the rest of the country only recording 0.9% growth in this sector.”

“We have also benefited from the low value of the Kiwi dollar in respect of our exports of manufactured goods. Also our tourism sector is enjoying increased occupancy rates and tourist passenger transport is also benefiting. This increased patronage is not only due to overseas visitors but also to New Zealanders deciding to holiday at home.”

“These results prove that Manukau is holding up better than the rest of the country. It is still one of the most attractive places to live, work and invest.”

ENDS

Media Contact:
Gabrielle Hinton
Media Liaison Support Officer
Ph: 09 2628900 x 8650
Fax: 09 2625759
Email: ghinton@manukau.govt.nz

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